Arian’s Chapter 3 Summary

Chapter 3 focuses on the roles and responsibilities of the various employees from an entry level to manager roles.It breaks down the departments involved in running a successful hotel. It also dives into how to manage room occupancy and calculating revenues. It talks about the various components of housekeeping as well as offering suggestions as to getting a headstart for pursuing the manager positions while still in college.


Key Terms

  1. Application Service Provide (ASP) – Delivers a complete booking system tied to the hotel’s inventory in real time via the Internet.;;
  2. Average Daily Rate– One of the key operating ratios that indicates the level of a hotel’s performance. The ADR is calculated by dividing the dollar sales by the number of rooms rented. Ex. Sales/ # of rooms rented
  3. Call Accounting Systems (CAS) – A system that tracks guest room phone charges Ex. Computer database chart.
  4. Catastrophe Plans– A plan to maximize guest and property safety in the event of a disaster. Ex. Earthquake, Tsunami, Katy Perry’s β€œFirework”
  5. Central Reservation Office (CRO) – The central office of a lodging company, where reservations are processed. Ex. Front Desk
  6. Central Reservation System (CRS) – A reservation system that is commonly used in large franchises to connect their reservation systems with one another; enables guests to call one phone number to reserve a room at any of the chain properties.
  7. City Ledger– A client whose company has established credit with a particular hotel. Charges are posted to the city ledger and accounts are sent once or twice monthly. Ex. Is the accounting of a company that has established credit with the hotel.
  8. Concierge – A uniformed employee of a hotel who works at a desk in the lobby or on special concierge floors and answers questions, solves problems,etc. Ex.A private secretary for hotel guests.
  9. Confirmed Reservations – A reservation made by a guest that is confirmed by the hotel for the dates they plan to stay. Ex. Confirmation number after booking room
  10. Cost Centers – Centers that cost money to operate and do not bring in revenue. Ex. Human Resource Department.
  11. Daily Report – A report prepared each day to provide essential performance information for a particular property to its management. Ex. Sales goals for the day
  12. Employee Right to Know – Per U.S. Senate Bill 198, information about chemicals must be made available to all employees. Ex. Harsh chemicals that can harm us.
  13. Executive Committee – A committee of hotel executives from each of the major departments within the hotel. Ex.The GM, Marketing director, HR director, accounting director, etc.
  14. Global Distribution Systems (GDS) – A system that can distribute the product or service globally. Ex. Reserving a Hilton in the US or reserving one in Europe.
  15. Guaranteed Reservations – If rooms are available on guest demand, the hotel guarantees the guest rooms on those days. Ex. Walk-ins book a room if its available.
  16. Night Auditor – The individual who verifies and balances the guest’s accounts. Ex. A cashier counting out their register.
  17. Occupational Safety and Health Administration (OSHA) – Purpose is to ensure safe and healthful working conditions, set mandatory job safety and health standards, conduct compliance inspections, and issue citations for noncompliance. Ex. Child labor laws
  18. Productivity – The amount of product, goods or services produced by employees. Ex.A good nights sleep usually leads to higher productivity.
  19. Property Management Systems (PMS) – A computerized system that integrates all systems used by a lodging property, such as reservations, front desk, housekeeping, food and beverage control, and accounting. Ex. Electronic bookkeeping
  20. Revenue Management – The management of revenue. Ex. Understanding what the money coming in means, adjust for busy/down times.
  21. Revenue Centers – Centers that produce revenue. Example: The accounting department of a hotel or any business is responsible for the cost and profit of an organization.
  22. Revenue Per Available Room (REV PAR) – Total rooms revenue for period divided by total rooms available during period.
  23. Room Occupancy Percentage (ROP) –The number of rooms occupied divided by rooms available; a key operating ratio for hotels.
  24. Room Rates – The various rates charged for a hotel room. Ex. $40 per night
  25. Rooms Division – The department that makes up the rooms division.
  26. Uniformed Staff – Front of house staff. Ex. Door attendant, the bell person, housekeeping and security.
  27. Yield Management – The practice of analyzing past reservation patterns, room rates, cancellations, and no-shows in an attempt to maximize profits and occupancy rates and to set the most competitive room rates. Ex. Educated guessing as to how many rooms will be filled regardless of how many are reserved.


1 thought on “Arian’s Chapter 3 Summary

  1. Kesso Diallo

    Kesso Diallo
    Prod Duchamp
    Chapter 3 summary

    Chapter 3 is mainly about hotels having many goals while working but they usually aim for the customers and the staff employees ; to satisfy them, Hotels have many things such as lobby entrance, parking space for customers who have vehicles . Overall the this chapter focuses on the functions and departments of a hotel.

    Application service provider – this helps hotel save time including money

    Average daily rate – Ex: my mom has an average of daily revenue for 2500 and has 25 cars available per day the average rate would be $10.

    Call accounting systems – every guest that stays in a hotel has a phone in the room and there is no fee , you can call as much as you please. Also the a

    Catastrophe plan – insurance just incase anything happens , for ex: renting your house to someone.

    Central reservation office – deals with 1800 numbers where you can call to reserve or book a hotel room.

    City ledger – can be found in the back of house

    Concierge – provides services to customers , for example , how to locate certain things ex: POOL or eating areas .

    Confirmed reservations – email received after making a payment to something or signing up .

    Cost Centers – review accountants information

    Daily Report – how many rooms that were booked and how many were not ; reserved rooms or not .

    Employee right to know – salary and/ profits

    Executive committee – making decisions and making sure its delivered ,

    Global distribution systems – you can book through this system to make sure it is what you want. Availability

    Guaranteed reservation – confirming a flight or a hotel room 24 hours before , just in case so you can be guaranteed a space .

    Night Auditor – a staff employee who works at night ; front desk .

    Occupational safety and health administration – enforces safety rule

    Productivity – economic values, average measure of the production .

    Property management systems – is the head system that hotels use to gather information on all minor systems in the hotel .

    Revenue management – peak; hotels have different prices for seasons

    Revenue centers – hotel generate their revenue through sales .

    Revenue per available room – an important metric because it provides a quick, simple overview of a company’s top-line operations in a form that incorporates both room rates and occupancy.

    Yield management – purchasing a ticket where you know its cheap instead of buying it when everyone is going on vacation a month prior where its more expensive.

    Uniformed staff – involved in the same requirements

    Room divisions – has many branches under it as well where they work as one to control the function sales.

    Room rates – rates that are charged for a hotel room ; the prices change every season .

    Room occupancy percentage – when you divide the rooms booked to not booked .


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